Short Sales Are Common in Florida
The term underwater mortgage describes the common situation in which a homeowner owes more to the bank than the property is worth on the real estate market. Selling the home, in other words, would not handle the problem, since the individual would end up still owing money to the bank to pay down the balance on the loan. If you find yourself in this situation, you are not alone. Florida has one of the highest rates of underwater mortgages in the nation – 44.2 percent – according to a recent report from NBC News. Even the homes that are not yet upside-down are close: The residential property value in this state is $809.95 billion, only slightly more than the outstanding mortgage debt of $706 billion. Fortunately, there is a solution to an underwater mortgage, and it is known as a short sale.
In a short sale, the homeowner negotiates with the bank for the permission to sell the home at the highest price it will fetch on the market, and the bank agrees to waive the deficiency. Success in carrying out a short sale depends on taking action as early as possible, in order to provide adequate time to prepare the case and to carry out the necessary negotiations with the bank. For this reason, you should not wait another moment before contacting The Law Offices of Justin McMurray, P.A. to get a Gainesville foreclosure defense attorney on your side.
Will a short sale affect my credit score?
Even if you are not concerned about losing the home, it is very much in your best interests to avoid the serious consequences of foreclosure. A short sale will still have a negative impact on your credit score, but it is generally considered to be less than a foreclosure because many lenders will recognize that you took responsibility for the situation and attempted to find a solution rather than letting the case move forward to foreclosure. Learn more about the process and take the first steps in your case by contacting us now for a free case evaluation.